Answer:
If Jenny doesn’t earn any interest on her savings and wants to perfectly smooth consumption across her life, how much will she consume every year?
Jenny's total income during her life = income as tax analyst ($60,000 x 10) + income as PhD student ($12,000 x 5) + income as Art Director (35 x $95,000) = $3,985,000
she generated income during 50 years and expects to live 20 more, so in order to perfectly smooth consumption across her life, she must divide her total life income by 70 years = $3,985,000 / 70 years = $56,928.57 per year
What might prevent her from perfectly smoothing consumption?
First of all, besides inflation, you also earn interest on your savings. That is why 401k and other retirement accounts work so well (the magic of compound interest). Even if inflation and interests didn't exist, you cannot know exactly what you are going to earn in the future and for how many years. In this case, she earned $60,000 for 10 years, but then earned only $12,000 during 5 years. If she really wanted to smooth her consumption, she would have needed to get a loan because her savings during the first 10 years wouldn't be enough.
Answer:
<em>Inferential statistics</em>
Explanation:
Inferential statistics are among the two central statistics groups.
To define and draw conclusions about the population, inferential statistics <em>use a representative sample of data gathered from a population. </em>
Inferential statistics are useful when it is not feasible or practical to analyze each participant of a whole population.
Answer: Company X could lose more business before it will begin experiencing financial difficulties when it is being compared to company Y
Explanation:
Margin of safety ratio simply helps to understand the extent to which there'll be drop in sales before a company will begins to make a loss.
Since the margin of safety ratio for Company X is 42% and the margin of safety ratio for Company Y is 25%, it means that Company X could lose more business before it begins experiencing financial difficulties when it is compared to company Y.
The three stances are the neutral fiscal stance, which occurs when the budget is well balanced and the economy is in equilibrium; then there's the<span> expansionary fiscal stance in which the spending exceeds tax revenues, which occurs usually during hard periods such as recessions; and the final stance is </span><span>the contractionary fiscal stance, in which the government spends less than what the tax revenue is. </span>
Answer: C.
Intercoms are a very useful system for businesses because, it allows the customers to just drive up an order from the machine rather than having to get out of the car and going into the restaurant establishment itself.
